IMO, The mitsubishi deal is to flush the chinese buyer out and to put a floor to the price. Without this announcement, the chinese would not have made the 1st bid.
The Koreans are supportive of Mitsubishi because they may be after a better price for their 16%.
My feeling is if the Chinese buyer isn't forthcoming, Posco may end up taking over the 50% owned by MMX from Mitsubishi sometime afterwards.
It's hard to see Sino (which can now buy out 50% of JHEP for a song at between 70-80 cents) to sit idly by and let the Japs & Koreans share the loot. Buying it now for 70-80 cents sure beats having to beg the Japs to sell them at $2 a couple of years down the track when the market recovers.
Weld Range is crap compared to JHEP in terms of tonnage, grade and mine life. Why would Sino chip in for Oakajee if after all the acrimony and bitterness, the Chinese end up back at square 1 in terms of resource ownership.
MMX Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
